Haig Partners is featured in the Automotive News article, "Could AI software put a value on a car dealership? Some say yes."

As it relates to the use of AI in dealership valuations, Alan Haig shares that it is highly subjective. In part, the reasoning behind this is unlike other industries such as housing, the prices paid for dealerships are kept highly confidential and the valuation methods used today are often proprietary.

Although a dealership's financial statement is used to help determine value of the business in the buy-sell process, based on the more than 600 buy-sell transactions we have been involved in, combined with the thousands of dealerships/dealership groups our team has evaluated, we find that statements are often incorrect, For instance, the financial statements may not show certain personal expenses, In fact, Alan shared that an average of a 22 percent increase in a dealership's pretax profit following a reevaluation of its financial statement was found in the last 10 transactions Haig Partners completed.

Real estate appraisals, however, is an area Haig Partners sees opportunities for AI to be of value. Because the data is public record, AI could help in eliminating discrepancies, which we have seen vary by as much as 20%.

Read the entire article at autonews.com [may require a subscription].